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The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising budget of $ 7 , 0 0 0 .
The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising budget of $ between newspaper advertising and radio
advertising. Management decided that at least of the budget must be spent on each type of media and that the amount of money spent on local newspaper
advertising must be at least twice the amount spent on radio advertising. A marketing consultant developed an index that measures audience exposure per dollar of
advertising on a scale from to with higher values implying greater audience exposure. If the value of the index for local newspaper advertising is and the value of the index for spot radio advertising is how should the restaurant allocate its advertising budget to maximize the value of total audience exposure?
a Formulate a linear programming model that can be used to determine how the restaurant should allocate its advertising budget in order to maximize the value of
total audience exposure. Assume is the amount spent on newspaper advertising and is the amount spent on radio advertising.
Max
st
budget
minimum newspaper spending
minimum radio spending
comparison radio and newspaper spending
b Develop a spreadsheet model and solve the problem using Excel Solver. Round the Newspaper Dollars Allocated and the Radio Dollars Allocated to the nearest cent.
Round the Total Exposure Index to the nearest integer.
Newspaper Dollars Allocated $
Radio Dollars Allocated $
Total Exposure Index
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